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Q3 2016

RESULTS
Focused, Sustainable Growth
Pharma Leader

ALLERGAN CAUTIONARY STATEMENT REGARDING


FORWARD-LOOKING STATEMENTS
This communication includes statements that refer to estimated or anticipated future events and are forwardlooking statements. We have based our forwardlooking statements on managements beliefs and assumptions based on information
available to our management at the time these statements are made. Such forwardlooking statements reflect our current perspective of our business, future performance, existing trends and information as of the date of this filing. These include, but
are not limited to, our beliefs about future revenue and expense levels and growth rates, prospects related to our strategic initiatives and business strategies, including the integration of, and synergies associated with, strategic acquisitions, express or
implied assumptions about government regulatory action or inaction, anticipated product approvals and launches, business initiatives and product development activities, assessments related to clinical trial results, product performance and
competitive environment, and anticipated financial performance. Without limiting the generality of the foregoing, words such as may, will, expect, believe, anticipate, plan, intend, could, would, should, estimate, continue, or pursue,
or the negative or other variations thereof or comparable terminology, are intended to identify forwardlooking statements. The statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are
difficult to predict. We caution the reader that these statements are based on certain assumptions, risks and uncertainties, many of which are beyond our control. In addition, certain important factors may affect our actual operating results and could
cause such results to differ materially from those expressed or implied by forwardlooking statements. These factors include, among others the inherent uncertainty associated with financial projections; the anticipated size of the markets and continued
demand for Allergans existing products; Allergans ability to successfully develop and commercialize new products; Allergans ability to conform to regulatory standards and receive requisite regulatory approvals; availability of raw materials and other
key ingredients; uncertainty and costs of legal actions and government investigations; the inherent uncertainty associated with financial projections; fluctuations in Allergans operating results and financial condition, particularly given our manufacturing
and sales of branded products; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected synergies, restructuring, increased costs, and adverse
tax consequences; the restructuring completed in connection with Allergans divestiture of its generics business to Teva Pharmaceutical Industries Ltd.; the results of the ongoing business following the completion of the divestiture of Allergans
generics business to Teva; the adverse impact of substantial debt and other financial obligations on the ability to fulfill and/or refinance debt obligations; risks associated with relationships with employees, vendors or key customers as a result of
acquisitions of businesses, technologies or products; our compliance with federal and state healthcare laws, including laws related to fraud, abuse, privacy security and others; generic product competition with our branded products; uncertainty
associated with the development of commercially successful branded pharmaceutical products; costs and efforts to defend or enforce technology rights, patents or other intellectual property; expiration patents on our branded products and the potential
for increased competition from generic manufacturers; competition between branded and generic products; Allergans ability to obtain and afford third-party licenses and proprietary technology we need; Allergans potential infringement of others
proprietary rights; our dependency on third-party service providers and third-party manufacturers and suppliers that in some cases may be the only source of finished products or raw materials that we need; Allergans competition with certain of our
significant customers; the impact of our returns, allowance and chargeback policies on our future revenue; successful compliance with governmental regulations applicable to Allergans and Allergans respective third party providers facilities, products
and/or businesses; the difficulty of predicting the timing or outcome of product development efforts and regulatory agency approvals or actions, if any; Allergans vulnerability to and ability to defend against product liability claims and obtain sufficient or
any product liability insurance; Allergans ability to retain qualified employees and key personnel; the effect of intangible assets and resulting impairment testing and impairment charges on our financial condition; Allergans ability to obtain additional
debt or raise additional equity on terms that are favorable to Allergan; difficulties or delays in manufacturing; our ability to manage environmental liabilities; global economic conditions; Allergans ability to continue foreign operations in countries that
have deteriorating political or diplomatic relationships with the United States; Allergans ability to continue to maintain global operations and the exposure to the risks and challenges associated with conducting business internationally; risks associated
with tax liabilities, or changes in U.S. federal or international tax laws to which we are subject, including the risk that the Internal Revenue Service disagrees that Allergan is a foreign corporation for U.S. federal tax purposes; risks of fluctuations in
foreign currency exchange rates; risks associated with cyber-security and vulnerability of our information and employee, customer and business information that Allergan stores digitally; Allergans ability to maintain internal control over financial
reporting; changes in the laws and regulations, affecting among other things, availability, pricing and reimbursement of pharmaceutical products; the highly competitive nature of the pharmaceutical industry; Allergans ability to successfully navigate
consolidation of our distribution network and concentration of our customer base; the difficulty of predicting the timing or outcome of pending or future litigation or government investigations; developments regarding products once they have reached
the market; risks related to Allergans incorporation in Ireland, such as changes in Irish law and such other risks and other uncertainties detailed in Allergans periodic public filings with the Securities and Exchange Commission, including but not limited
to Allergans Annual Report on Form 10-K for the year ended December 31, 2015; and from time to time in Allergans other investor communications. Except as expressly required by law, Allergan disclaims any intent or obligation to update or revise
these forward-looking statements.
NonGAAP Financial Measures
This document contains nonGAAP financial measures. The Appendix hereto presents reconciliations of certain nonGAAP financial measures to the most directly comparable GAAP measures. The nonGAAP measures include non-GAAP net
income, non-GAAP earnings per share, adjusted EBITDA, non-GAAP operating income.
We believe these nonGAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and to make daytoday operating decisions, prepare
internal forecasts, communicate external forward looking guidance to investors, compensate management and allocate the companys resource. We believe this presentation also increases comparability of periodtoperiod results.
Other companies may use similarly titled non GAAP financial measures that are calculated differently from the way we calculate such measures Accordingly our non GAAP financial measures may not be comparable to similar nonmeasures.
Accordingly, non-GAAP measures used by other companies. We caution investors not to place undue reliance on such nonGAAP measures, but instead to consider them with the most directly comparable GAAP measure. NonGAAP financial
measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for our results as reported under GAAP.

AGENDA
1

Q3 2016 Overview

Commercial Highlights

R&D Update

Q3 2016 Financial Results

Q&A

Brent Saunders, CEO & President


Bill Meury, Chief Commercial Officer

David Nicholson, Chief R&D Officer


Tessa Hilado, Chief Financial Officer

BRENT
SAUNDERS
Chairman, CEO and President

ALLERGAN:

A FOCUSED GROWTH
PHARMA LEADER
Category
Leadership
Maintain/achieve # 1 & 2
position in key therapeutic areas
Innovation
driven to address
unmet needs

Operational
Excellence

Strong
Top-Line Growth
Sustainable top line revenue growth
Leading global brands
Targeted geographic expansion

GROWTH
PHARMA

Customer
Intimacy
Deep knowledge of
therapeutic area
environment
Highly
responsive/
service
oriented

Industry leading
operating margins
Sales and marketing engine

Open

Simplified & reliable


Science
manufacturing
R&D
network
Industry leading pipeline to sustain
therapeutic area growth and leadership
Development Powerhouse

SHAREHOLDER FRIENDLY CAPITAL ALLOCATION


DEMONSTRATES STRONG CONVICTION IN OUR FUTURE
Since August 2nd

$5B
Share Repurchase Completed

Announced Today

$10B

> Total Board Authorization


of $15B (additional $5B)

Accelerated Share Repurchase

$0.70
per share
quarterly
dividend

> Expect to Grow Annually


> Maintain Investment
Grade Credit Rating

Stepping Stone Deals


6

Q3 2016 CONTINUING OPERATIONS PERFORMANCE


Operational Excellence
Top-tier revenue growth continues
> Net revenues = $3.6 Billion

+4.5% growth vs prior year


+7.4%* vs prior year excluding FX, Namenda IR,
Divestitures and other adjustments

Top-tier profitability among peer group


continues while making strong investments
in our future
> Gross Margin = 87.8%; Operating Margin = 49.3%

Non-GAAP EPS = $3.32

3
Allergan Q
rd
Report Ca
Promoted wth
o
product gr
ct launch
New produ e
c
performan
brands
Establishedomoted
and non-pr
e
R&D Pipelin
Profitability

All Q3 results in this presentation are for Continuing Operations on a non-GAAP basis.
* Excludes FX, Namenda IR and Divestitures. Excludes the reclassification of revenues of ($23.7) MM in Q3 2016 and ($43.4) MM in Q3 2015 related to the portion of Allergan product
revenues sold by our Anda Distribution Business into discontinued operations. Excludes other adjustments related to an adjustment of $31.7MM recorded in the three months ended
September 30, 2015 related to international other product revenues for the six months ended June 30, 2015 that were reported in discontinued operations instead of continuing operations
during the six months ended June 30, 2015. The impact of this out-of-period adjustment is not material to the six months ended June 30, 2015 or the three months ended
September 30, 2015 and had no impact on the nine months ended September 30, 2015.
Continuing operations excludes Anda distribution business as a result of being held for sale on June 30th and closed on October 3rd and the Generics Business sold on August 2nd, 2016
Please refer to the GAAP to non-GAAP tables in the appendix for a reconciliation of our non-GAAP results

KEY PROMOTED BRANDS CONTINUE TO GROW


AT DOUBLE DIGIT RATES
~73% of Q3 revenues growing at double digits on aggregate
Top Global Products and New Launches Represent ~80% of Q3 Revenue
Represent 73% of Q3
Adjusted Revenue

91

15

21

23

13

11

11

68
69

35

50
44
88

-44%

-4%

Excludes FX, Namenda IR and divestitures. Excludes the reclassification of revenues of ($23.7) MM in Q3 2016 and ($43.4) MM in Q3 2015 related to the portion of Allergan product
revenues sold by our Anda Distribution Business into discontinued operations. Excludes other adjustments related to out-of-period adjustments in Q3 2015 net revenues

Viberzi, Vraylar, Kybella and Namzaric

Represents all other product revenues, excluding Namenda IR, divestitures, and reclassification of revenues related to the portion of Allergan product revenues sold
by our Anda Distribution Business into discontinued operations.

All global products revenue metrics excludes the impact of FX

FX

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21%

es
ta
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Q
2

Q3 2015
Revenues
($000)

Bo
to
x

20
15

15%

44%

42%
25%

$3,4021

$3,6431
7.4%

32

R&D TEAM CONTINUES TO BUILD & DELIVER THE PIPELINE


Building and delivering a sustainable pipeline through Open Science R&D

Strong R&D productivity


continues YTD:

19

11

Major pharma
and device
approvals

Major
Submissions

7
Major Pipeline
Advancements

9 YTD Stepping Stones


strengthen our pipeline
ANT027

Collaboration

Dermatology

Periocular Ring
technology
Eye Care

Muscarinic agonists neurology

XAF5

Cenicriviroc
Evogliptin

FXR

NASH

NASH

Topical treatment
for Steatoblepharon

RORt
LXR

Dermatology

RST-001

Retinitis Pigmentosa

BRAZIKUMAB

Crohns, Ulcerative colitis


auto-inmune disorders

BILL
MEURY
Chief Commercial Officer

STRONG SALES PERFORMANCE BY THERAPEUTIC AREA


TA

Key Highlights

Q3 Rev
($MM)1

Growth vs PY
(Actual Rates)

Growth vs PY
(Excluding Fx)

EYE CARE

Restasis, Ozurdex strong performance

$903

10%

10%

CNS

Successful Vraylar launch and strong


Botox Tx, offset by Namenda XR decline

$649

2%

3%

AESTHETICS/
DERMATOLOGY

Botox, Fillers continue to drive growth

$756

14%

14%

GI

Linzess and Viberzi key growth


drivers offset by Asacol HD decline

$464

9%

9%

WH

Lo Loestrin remains #1 prescribed OC

$320

15%

15%

UROLOGY

Botox OAB key driver of growth,


strong growth offset by Rapaflo

$89

6%

6%

ANTIINFECTIVE

Growth impacted by Avycaz supply


disruption

$53

<1%

<1%

1. Revenues reflect continuing operations, exclude established brands and divestitures and excludes the reclassification of revenues related to the portion of Allergan
product revenues sold by our Anda Distribution Business into discontinued operations. Botox sales are allocated by indication into Aesthetics, CNS, Urology.
2. Revenues excludes Namenda IR.

11

LINZESS AND VIBERZI: GI FLAGSHIPS


Strong Linzess prescription growth
60,000

Double Digit Growth Continues

55,000
50,000
45,000
40,000

30% prescription
growth in Q3 vs
P/Y

> Linzess uptake in LTC is strong and


continued growth is anticipated
> Launch readiness for Linzess 72 mcg

10

/3
11 0/2
/1 01
11 3/2 5
/2 01
12 7/2 5
/1 01
12 1/2 5
/2 01
5/ 5
2
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22 16
/2
2/ 01
5/ 6
2/ 20
19 16
/2
3/ 01
4/ 6
3/ 20
18 16
/2
4/ 01
1/ 6
4/ 20
15 16
4/ /20
29 16
5/ /20
13 16
5/ /20
27 16
6/ /20
10 16
6/ /20
24 16
/2
7/ 01
8/ 6
7/ 20
22 16
/2
8/ 01
5/ 6
8/ 20
19 16
/2
9/ 01
2/ 6
9/ 20
16 16
9/ /20
3 1
10 0/2 6
/1 01
4/ 6
20
16

35,000

> Majority (73%) of Linzess new


patients are coming from the OTC
market

$3,500,000

Viberzi sales levels at ~90% of Linzess

$3,000,000

$2,000,000

TRxs Continue to Show Strong


Growth Trajectory

$1,500,000

> Use across all severities of IBS-D

$2,500,000

$1,000,000

Linzess total net sale

$500,000

Viberzi total net sale

W
ee
k
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ee
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W 3
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W 37
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W 39
ee
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W 41
ee
k
W 43
ee
k
45

$0

> OTC conversion increasing


> Broad utilization by primary care
and gastroenterologist

12

MEDICAL AESTHETICS, HIGH QUALITY FAST GROWING


CASH BUSINESS WITH EXCELLENT MARKET DYNAMICS

> Gaining momentum in Stage 2


of launch with DTC launched
in mid-August

2016

2015

% of Patients ages 2030


Years

> Current gender mix is 12% male,


88% female

> JUVDERM VOLBELLA XC launch


October
First and only FDA-approved
filler proven to increase lip fullness
and correct perioral lines for up
to 1 year

Kybella Weekly BD
Treatments

DTC

1,575

n
Fe
b
1M
ar
1Ap
1- r
M
ay
1Ju
n
1Ju
1- l
Au
g
1Se
p
1O
ct
1N
o
1- v
D
ec

4%

VOLBELLA and VOLLURE Launches

Ja

6%

1-

> Millennials use of Botox Cx is


on the rise

1-

> Botox Cx continues to experience


strong growth globally in the quarter

> Male mix for Kybella is 2x higher


than Botox and Juvederm

> JUVDERM VOLLURE XC expected


1H17
Presents a great leap forward as
a Versatile filler

13

EXCELLENT LONG TERM GROWTH PROSPECTS


Penetration rates for Botox in both the aesthetic and
therapeutic markets are still low and have room for growth

Botox Cx

Migraine

OAB

Total Patients

32.4MM

3.28MM

5.5MM

Botox Patients

2.4MM

197K

165K

7%

6%

3%

Penetration Rate

Source: US census data, Allergan market research 2016 and Allergan internal data

14

DEMAND FOR VRAYLAR AND NAMZARIC DRIVING GROWTH


Launch continues
excellent trajectory

33 weeks in the market shows strong TRx


performance

Positive feedback on overall Vraylar profile


continues

Focus as the standard of care


in treatment of moderate AD

P
P

Strong coverage at 85% of Medicare beneficiaries


Full Titration Kit with full launch in Q4

Launch-aligned TRx

6,000

Namzaric New DOT - All Channels


77,000

4,500

New Indication

62,000

3,000
Rexulti

1,500

Latuda

47,000

Vraylar
w
k
w 9
k1
w 1
k1
w 3
k1
w 5
k1
w 7
k1
w 9
k2
w 1
k2
w 3
k2
w 5
k2
w 7
k2
w 9
k3
w 1
k3
w 3
k3
w 5
k3
w 7
k3
w 9
k4
w 1
k4
3

k5
k7
w

k1
k3
w

9/
2
10 5/2
/1 01
6/ 5
11 201
/6 5
11 /20
/2 15
12 7/20
/1 15
8/
2
1/ 01
8/ 5
1/ 20
29 16
2/ /20
19 16
/
3/ 201
11 6
/2
4/ 01
1/ 6
4/ 20
22 16
5/ /20
13 16
/2
6/ 01
3/ 6
6/ 20
24 16
7/ /20
15 16
/2
8/ 01
5/ 6
8/ 20
26 16
9/ /20
16 16
10 /20
/7 16
/2
01
6

32,000

1. Source: IMS Weekly NPA and NTBRx, 23-Sep reporting period. NTBRx data are smoothed by 3-unit boxcar averaging.

15

LAUNCHING TWO NEW DRY EYE PRODUCTS


Dry Eye Market Growing at 15%*

> Broadening our


product offering
to accelerate growth
> Restasis is the market
leader in dry eye
> Maintaining excellent
coverage in both
Commercial Part D

> Preference for


multi-dose bottles
to single unit vials

> Potential to provide


immediate relief by
restoring natural tear film

> FDA approval


Oct 28th

> Appealing alternative to


drop therapy

> Leveraging largest,


strongest and most
experienced sales
force in eye care

> Launch 1Q 2017

* Source: IMS data most recent 4 weeks through 10/21/16 vs same period prior year

16

INTERNATIONAL BUSINESS CONTINUES STRONG


GROWTH AND EXPANSION

WE
+8%
LACAN

Canada & LATAM

+14%

> Eye Care and Aesthetics Driving


International

NESEE
+26%

TMEA
+6%

APAC
+14%

> APAC, Western Europe and


LACAN largest $ growth
contributors
China fastest growing market
(+44%) driven by Aesthetics
> Launches of Constella and
XEN underway and preparing
to launch Truberzi and Belkyra

Regional growth rates in chart reflect Q3 growth vs prior year excluding FX impact
WE: Western Europe
TMEA: Turkey, Middle East and Africa
NESEE: North East and South East Europe
APAC: Asia Pacific

17

FOCUS ON MAXIMIZING ASSETS AND EXECUTING ON FUTURE


LAUNCHES: >10 LAUNCHES UNDERWAY TO DRIVE FUTURE GROWTH

18

DAVID
NICHOLSON
Chief R&D Officer

OPEN SCIENCE IS BUILDING AND DELIVERING


OUR PIPELINE

BUILDING
THE
PIPELINE

OPEN
SCIENCE

>9 stepping stones


additions to the pipeline YTD
DELIVERING
THE
PIPELINE

>19 total major pharma


and device global approvals YTD
>Total of 11 major regulatory
submissions YTD

We identify best-in-class, game


changing, innovative opportunities
within our therapeutic areas by
tapping into the total universe of
sources independent of where
ideas come from

We develop and obtain regulatory


approval for innovative products
through an exceptional team of
scientists, R&D professionals.

20

CONTINUE TO BUILD OUR PIPELINE, 6 NEW STEPPING


STONE ACQUISITIONS SINCE LAST QUARTER
Open Science R&D: We identify the best science regardless of source

TRUE TEAR
TAVILERMIDE

RAPASTINEL
APIMOSTINEL
UBROGEPANT
ATOGEPANT
CGRP antagonists

Periocular Ring
technology
Eye Care

RST-001

Retinitis Pigmentosa

Since Q2 2016

ANT027
Dermatology

XAF5

RUGEN

THERAPEUTICS

Collaboration

Muscarinic agonists
eurology

RELAMORELIN

Topical treatment
for Steatoblepharon

RORt
LXR

Dermatology

Cenicriviroc
Evogliptin
NASH

FXR
NASH

BRAZIKUMAB

Crohns, Ulcerative colitis


auto-inmune disorders

21

DELIVERING ON OUR PIPELINE, ADVANCING MAJOR PROGRAMS


Major
achievements
in our
pipeline

Ubrogepant: Initiated Ph 3 for acute


migraine. Topline results expected 2018.
Atogepant: Initiated Ph 2 for migraine
prophylaxis. Topline results expected 2018.
Rapastinel: Initiated Ph 3 for MDD.
Topline results expected early 2019.

Relamorelin (DG): Positive Ph 2b


study results (option exercised).
Ph 3 to commence 2H 2017.
TRUBERZI (eluxadoline): Positive
Opinion for in EU. Expected launch 2017.

Restasis MD: FDA approval October 28th


SER-120 (nocturia): Favorable vote
from FDA Advisory Committee.
Approval expected 2016

Major
pipeline
catalyst
in the next
12 months

Cariprazine Negative symptoms:


Based on FDA feedback, sNDA filing
expected 1H 2017
Botox Depression: Ph 2 topline results
expected 2H 2017
Semprana (acute migraine): submission
2H 2017
RORt agonist (psoriasis): Ph 2b initiation
1H 2017
Sarecycline (Acne): Ph 3 results
expected early 2017

Cenicriviroc (Nash): Ph 3 initiation 1H


2017
Brazikumab (Crohns): Ph 2a data
1H 2017
True Tear: Potential approval Q1 2017
XEN: Potential approval Q2 2017
Tavilermide: 1st Ph 3 results Q4 2016

Esmya: 2nd Ph 3 results


early 2017
22

Composite Score

RELAMORELIN, POSITIVE RESULTS FROM PHASE 2A /2B


Change from Baseline Mean +/- SE

1
0

-1
-2

FDA Draft Guidance:


Composite endpoints are an acceptable basis for approval
-3
-4

Phase 2b study results

Phase-5 2a study results


-6

Composite1Score

Baseline

Four-Symptom Composite

-1

Week
Placebo (N=36)
RM-131 10 ug BID (N=30)

-2
-3
-4
-5
-6
-7

*p value <0.05 vs. PBO

-8
Baseline

*
2

*
3

Four-symptom composite2: substantial efficacy from baseline


demonstrated by week 12

Change from Baseline ( SE)

Change from Baseline ( SE)

Change from Baseline Mean +/- SE

Four-symptom composite
: change from baseline in
-7
*
1vomiting subgroup
-8
*
*

Four-Symptom Composite
Change from Baseline Pooled Doses

Week

Week

Reduction in vomiting frequency vs baseline at week 4:


Placebo (N=36) 3
RLM (10 ug BID)=-76.8%3; PBO=-12.7%
p-value=0.041
RM-131 10 ug BID (N=30)

Reduction in vomiting frequency vs baseline at week 12:


RLM (10/30/100)=-74.9%4; PBO=-70.5%4 p-value>0.05

FDA Draft Guidance (July 2015) We recommend the use of an endpoint(s) that is based either on: (1) measuring each of the core signs and
symptoms separately, thereby producing individual sign and symptom scores with a responder definition that incorporates each individual sign and
symptom score change; or (2) a summary score of the core signs and symptoms (excluding vomiting) with a responder definition based on meaningful
summary score change and vomiting frequency change.
1. Nausea, abdominal pain, early satiety, bloating. 2. Nausea, abdominal pain, post-prandial fullness, bloating
3. Analysis was done on change from baseline of normalized, weekly vomiting data and reported as percent change, calculated by Motus as 100 x (LS mean change from
baseline/baseline) 4. Analysis was done on change-from-baseline of log-transformed, normalized, weekly vomiting data using a threshold of 4 weekly diary entries and reported, after
being back- transformed, as percent change from baseline

23

TESSA
HILADO
Chief Financial Officer

INITIATING DIVIDEND AND INCREASING SHARE


REPURCHASE TO $15 BILLION
Share
Repurchase

$15 Billion share repurchase authorization


(formerly $10 Billion authorized)
> $5 Billion completed as of October 21st
21 million cumulative shares repurchased at $237.59 average price
> $10 Billion share repurchase to commence in early November under ASR program

Returning
Capital to
Shareholders

> Up to 50% of the ASR program would be hedged through a collar transaction
Forecast 2016 average diluted share count of 408 million
Forecast year end diluted share count of 365 million

Dividend initiation beginning January 1, 2017


Dividend

> Quarterly dividend of $0.70 per share commencing in Q1 2017,


which we expect to grow annually
> Record date February 28, 2017
> Dividend payment date March 28, 2017

25

STRENGTHENING OUR BALANCE SHEET


THROUGH DEBT REPAYMENTS
Capitalization ($ billion)

Debt
Payment
Supports
Investment
Grade Credit
Ratings

Q3 2016

Cash and Marketable Securities

$27.4

Total Debt *

$32.8

Debt to Adjusted EBITDA

4.33 X

Net Debt to Adjusted EBITDA

0.71 X

> Total debt reduction of $9.8B YTD


> $6.5B in contractual maturities over the next 18 months

$2.7B in 2017 and $3.8B in 2018


* Includes $32.75B in Senior Notes and $0.02B in Debt issuance cost, premium and other

26

Q3 2016 FINANCIAL PERFORMANCE


$ millions, except per
share amount (Non
GAAP)*

Q3 2016

Q3 2015

Net Revenue

3,622

3,466

4.5%

Gross Margin %

87.8%

88.7%

386

R&D Expense
SG&A

Y/Y

Q2 2016

Q/Q

3,685

-1.7%

-0.9%

88.0%

-0.2%

305

26.7%

345

12.0%

1,007

867

16.1%

1,039

-3.1%

% of Revenue

27.8%

25.0%

2.8%

28.2%

-0.4%

Operating Income

1,784

1,895

-5.8%

1,860

-4.1%

Op. Margin %

49.3%

54.7%

-5.4%

50.5%

-1.2%

Adjusted EBITDA

1,902

1,987

-4.3%

1,937

-1.8%

Earnings Per
Share

$3.32

$3.41

-2.6%

$3.35

-0.9%

Tax Rate

8.2%

7.7%

0.5%

7.1%

1.1%

(1,092)

1,048

1,383

N/A

Cash Flow From


Ops

N/A

> Revenue growth of 4.5% primarily impacted by Asacol HD


loss of exclusivity, divestitures, lower than expected
Namenda XR and Namenda IR decline

7.4% growth excluding Namenda IR, FX, divestitures


and other adjustments**

> Gross margins remain strong at ~88%

90 points decline versus prior year driven in part

by higher production costs primarily related to capacity


expansion and manufacturing variance

> Operating margin impacted by higher S&M to continue


to support ongoing launches of Vraylar, Viberzi and Kybella
and higher R&D versus prior quarter
> Reported cash flow from operations was ($1.09B)
~$1.72B excluding taxes paid on gain of Gx business
sale, R&D asset acquisitions and restructuring payments

* All metrics are as a % of Net Revenues. Please refer to the GAAP to non-GAAP tables in the appendix for a reconciliation of our non-GAAP results.
** Excludes FX, Namenda IR and Divestitures. Excludes the reclassification of revenues of ($23.7) MM in Q3 2016 and ($43.4) MM in Q3 2015 related to the portion
of Allergan product revenues sold by our Anda Distribution Business into discontinued operations. Excludes other adjustments related to out-of-period adjustments
in Q3 2015 net revenues.

27

US SPECIALIZED THERAPEUTICS Q3 2016 PERFORMANCE


$ millions - (Non GAAP)

Q3 2016

Q3 2015

Y/Y

Q2 2016

Q/Q

> Revenue growth remains strong at 12% vs prior year

Net Revenues

1,453

1,297

12.1%

1,489

-2.4%

Gross Margins

95.2%

94.5%

0.7%

95.0%

0.2%

SG&A
% of Revenue

334
23.0%

253
19.5%

31.6%
3.5%

334
22.4%

-0.1%
0.6%

Med Derm growth strengthened by launch

Segment Margin

72.3%

74.9%

-2.6%

72.5%

-0.2%

Eye Care growth of 13% driven by growth

Medical Aesthetics growth of 14% driven by

Fillers, Botox Cx and recently launched Kybella


of Aczone 7.5%

in Restasis, Ozurdex and Glaucoma drops

Botox Tx had another quarter of double digit


growth at 17% versus prior year

> Sequential 2% revenue decline primarily driven


by seasonality of Medical Aesthetics and Eye Care
> Increase in SG&A versus prior year attributable
to sales force expansions and increased promotion
for key brands including Kybella DTC advertising

Includes revenues earned that were distributed through the Anda Distribution Business to third-party customers.

28

US GENERAL MEDICINE Q3 2016 PERFORMANCE


$ millions - (Non GAAP)

Q3 2016

Q3 2015

Y/Y

Q2 2016

Q/Q

Net Revenues

1,488

1,552

-4.1%

1,449

2.7%

Gross Margins

85.5%

85.3%

0.2%

85.2%

0.3%

SG&A
% of Revenue

Segment Margin

335

280

19.6%

376

22.5%

18.1%

4.4%

26.0%

-11.0%
-3.5%

63.0%

67.3%

-4.3%

59.2%

3.8%

> Revenue decline of 4% vs prior year primarily


attributed to Asacol HD generic entry, lower
Namenda XR/IR revenues and lower Established
Brands due to Cervidil divestiture and Enablex
generic entry
> Strong growth in Linzess, Lo Loestrin, and other
WH product continued
> New product launches Viberzi and Vraylar
were key contributors to growth
> Increase in SG&A versus prior year primarily
related to higher spending to support launches
of Viberzi and Vraylar
> SG&A declined 11% versus prior quarter due
to timing of promotional spending coupled with
higher prior quarter Vraylar launch expenses

Includes revenues earned that were distributed through the Anda Distribution Business to third-party customers.

29

INTERNATIONAL Q3 2016 PERFORMANCE


$ millions - (Non GAAP)

Net Revenues
Gross Margins
SG&A
% of Revenue

Segment Margin

Q3 2016

Q3 2015

Y/Y

Q2 2016

Q/Q

698

661

5.6%

757

-7.8%

86.4%

83.6%

2.8%

84.8%

1.6%

216

189

14.3%

238

31.0%

28.6%

2.4%

31.5%

-9.2%
-0.5%

55.4%

55.0%

0.4%

53.4%

2.0%

> Q3 2016 performance growth of 12% vs prior year


excluding FX and an out-of-period adjustment*
> Strong operational revenue growth excluding Fx from
Fillers (+25%), Botox Cx (+18%), Botox Tx (+13%)
and Ozurdex (+29%)
> Sequential Revenue decline driven by seasonality of
Medical Aesthetics and Eye Care primarily in Europe
> APAC, Western Europe and LACAN were the largest
growth contributors versus prior year
> SG&A expenses increased versus prior year in support
of medical aesthetics business and new product
launches (Belkyra, Xen, Earfold and Constella)

* Out-of period adjustment includes an adjustment of $31.7MM recorded in the three months ended September 30, 2015 related to international other product revenues
for the six months ended June 30, 2015 that were reported in discontinued operations instead of continuing operations during the six months ended June 30, 2015.
The impact of this out-of-period adjustment is not material to the six months ended June 30, 2015 or the three months ended September 30, 2015 and had no impact on
the nine months ended September 30, 2015.

30

REVISED GUIDANCE FOR 2016


2016 Guidance (8/8/16)1

Revised 2016 Guidance1

Total Reported Net Revenue2 $14,650$14,900

$14,450$14,650

Gross Margin

~89%

~8788%

Non-GAAP SG&A

~$4 Billion

~$4 Billion

Non-GAAP R&D Spend

~$1.5 Billion

~$1.5 Billion

Tax rate %

~9%

~89%

Non-GAAP Net Interest


Expense/Other

~$1.30 Billion

~$1.25 Billion

Adjusted Diluted EPS

$13.75 - $14.20

$13.30$13.50

Average Share Count

~413 Million

~408 Million*

1. Excludes Anda from Net Revenues and expenses. Guidance based off of Reported Net Revenue
2. Excludes revenues of Allergan products sold through Anda Distribution Business which are no longer included in our reported continuing
operations revenue as a result of discontinued operations accounting.
* For the fourth quarter, forecasted average diluted share count is 383 million.
Above guidance represents non-GAAP figures. Refer to Table 11 of appendix for reconciliation of GAAP to Non-GAAP

31

GROWTH ORIENTED PURE BRANDED COMPANY


WITH LEADING PROFITABILITY

35%

50% 50%

43% 44% 45%

39%

69%
54% 55%

G
IL
D

EL
C

BI
IB

G
N
AM

BV

O
VO
N

PG

AB

SH

PF
E

R
M

BM

26% 28% 28%

AZ
N

LL
Y

AG
N
C
EL
G

G
IL
D

BI
IB

G
N
AM

PG

O
VO
N

SH

AZ
N

BV

22%

AB

PF
E

LL
Y

K
R
M

BM

VS

76% 76%
74% 75%

VS

82%

88% 88%

79%

87% 88%

85%
83% 84%

Operating Margins

96%

AG
N

Gross Margins

P Diverse and sustainable top line growth


P Strong Gross Margins
P Strong Operating Margins
Non-GAAP average year to date. Source: Company filings
* Non-GAAP average year to date excluding Anda Distribution Business

32

ENTERING 2017 STRONG AS A FOCUSED


GROWTH PHARMA LEADER

2016 Events and


Accomplishments
Operational and financial excellence
Strong commercial/financial execution
Capital allocation execution
9 stepping stones transactions through Open Science
Adding innovation in our 7 TAs to meet unmet needs

BOLD employee culture


to drive innovation and
success for the future

Sale of Anda Distribution Business


October 3rd closing
Sale of generics business
August 2nd closing >1yr after announcement

33

APPENDIX

34

Q3 PIPELINE YTD ACCOMPLISHMENTS


APPROVALS
Approvals
Aczone Gel 7.5%
US approved
AESTHETIC

!
Botox ! Volbella !
CFL Japan

lips US

SUBMISSIONS

!
Volite (w/
Voluma ! lidocaine) !
Botox LL Spasticity
US approved

nose EU

WH

CNS

URO, AI,
OTHER

Enzepi EPI
EU

Truberzi
EU (positive opinion)

Namzaric (7/10 and 21/10 doses)


US

Dalvance
single dose
Approved in
US & EU

Teflaro peds
US

Avycaz cIAI
with Ph 3 US

XEN - glaucoma
US (510k)

Linzess 72mcg
sNDA submitted

Liletta single handed inserter


(optimized package)
US Filed

Nebivolol/Valtarsan
US

* Efficacy not demonstrated. Option not exercised.

Liletta single inserter (optimized


package)
US

Voluma XC
Japan

True Tear
US (510k)

Setipiprant - Scalp Hair


growth
Initiation Ph 2a POC 1H

LXR (atopic dermatitis)


Phase 2a results

CE Mark

EYE
CARE

GI

Oxymetazoline (Rosacea)
US NDA submitted

DEVELOPMENT MILESTONES

Saphris Low dose &


Bipolar Mania
US accepted

Ser 120
Nocturia
US accepted

Relamorelin
Phase 2b data

Ulipristal
1st Ph 3 topline results

Rapastinel
Ph 3 initiated

!
!

Cariprazine
aMDD Ph 3 results
Avycaz cUTI
with Phase 3
US

TRV-027*
Ph 2b topline
results

Cariprazine - Bipolar Dep.


Initiated Ph 3

!
Atogepant
!
Initiated Ph 2 US

Ubrogepant
Initiated Ph 3 US

!
35

PIPELINE PRODUCTIVITY CONTINUES


Q4 2016 AND KEY 2017 HIGHLIGHTS
APPROVALS
Approvals
Kybella *
EU 2H
AESTHETIC

EYE
CARE

GI

SUBMISSIONS

Oxymetazoline
Rosacea

Voluma XC
Japan 2H

MDPF Restasis
US 2H

True Tear
Dry Eye

XEN
Glaucoma

DEVELOPMENT MILESTONES
Sarecycline
Acne

Sarecycline
Ph 3 topline results

Botox
Masseter
Ph 2 results

Latanoprost
Entry Ph 3

Botox FHL
US/EU 2H

Voluma Plus
CE Mark 2H

Volbella lips
Japan 2H

Botox CFL
China 2H

Restasis
EU 2H

MDPF Ganfort
EU early 2017

Bimatoprost SR
Ph 3 enrollment
completion

Abicipar
Ph 3enrollment
completion

Brimo DDS
Atrophic AMD. Ph 2
topline results

Omega 3 OTC
Dry Eye

Cortisol Analog
Dry Eye Entry Ph 3

Tavilermide
1st Ph 3

Pilo/Oxy
Presbyopia. Ph 2
topline results

Linzess
Delayed
Release CIC.
Entry Phase 3

Linzess
Low Dose CIC

Ulipristal
Uterine Fibroids
WH

Semprana
Acute
Migraine
US 2H

CNS

URO, AI,
OTHER

Avycaz
cUTI

* Belkyra in International markets (received positive opinion through European Decentralized Procedure).

Botox
MDD
Ph 2
Results

Avastin
Biosimilar
US/EU 2H

2H 2016

2017

Muscarinic
Receptor
Agonist
Entry Ph 1

LiRIS
Interstitial Cystitis.
Entry Phase3

36

Q3 2016 RECONCILIATION TABLES


Table 1:

Allergan plcs statement of operations for the three and nine months ended September 30, 2016 and 2015

Table 2:

Allergan plc's GAAP and Non-GAAP product revenue for Top Global Products for the three months ended
September 30, 2016 and 2015

Table 3:

Allergan plcs Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015

Table 4:

Allergan plcs Condensed Consolidated Statements of Cash Flows for the three and nine months ended
September 30, 2016 and 2015

Table 5:

GAAP to non-GAAP statement of operations for the three and nine months ended September 30, 2016 and 2015

Table 6:

Reconciliation of reported net (loss) from continuing operations and diluted earnings per share to non-GAAP
net income and diluted EPS for the three and nine months ended September 30, 2016 and 2015

Table 7:

Reconciliation of reported net (loss) from continuing operations for the three and nine months ended
September 30, 2016 and 2015 to adjusted EBITDA

Table 8:

Net Revenues and contribution margin for US Specialized Therapeutics Business Segment for the three and
nine months ended September 30, 2016 and 2015

Table 9:

Net Revenues and contribution margin for US General Medicine Business Segment for the three and nine months
ended September 30, 2016 and 2015

Table 10: Net Revenues and contribution margin for International Business Segment for the three and nine months ended
September 30, 2016 and 2015
Table 11: GAAP to non-GAAP reconciliation of FY 2016 EPS forecast
Table 12: New Segment Legend
37

TABLE 1:ALLERGAN PLCS STATEMENT OF OPERATIONS FOR THE THREE AND NINE MONTHS
ENDED SEPTEMBER 30, 2016 AND 2015
Table 1
ALLERGAN PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)

Net revenues

Three Months Ended


September 30,
2016
2015
$ 3,622.2
$ 3,469.5

Operating expenses:
Cost of sales (excludes amortization and impairment of
acquired intangibles including product rights)
Research and development
Selling, general and administrative
Amortization
In-process research and development impairments
Asset sales and impairments, net
Total operating expenses
Operating (loss)
Non-operating income (expense):
Interest income
Interest (expense)
Other income (expense), net
Total other income (expense), net
(Loss) before income taxes and noncontrolling interest
(Benefit) for income taxes
Net (loss) from continuing operations, net of tax
Income from discontinued operations, net of tax
Net income
(Income) attributable to noncontrolling interest
Net income attributable to shareholders
Dividends on preferred shares
Net income attributable to ordinary shareholders
(Loss) / income per share attributable to ordinary shareholders - basic:
Continuing operations
Discontinued operations
Net income per share - basic
(Loss) / income per share attributable to ordinary shareholders - diluted:
Continuing operations
Discontinued operations
Net income per share - diluted
Weighted average shares outstanding:
Basic
Diluted

Nine Months Ended


September 30,
2016
2015
$ 10,706.3
$ 9,081.2

462.2
622.8
1,157.2
1,609.1
42.0
(4.7)
3,888.6
(266.4)

710.3
1,260.5
1,022.7
1,557.8
300.0
(4.4)
4,846.9
(1,377.4)

1,381.1
1,662.4
3,463.5
4,831.9
316.9
(24.0)
11,631.8
(925.5)

2,150.0
1,927.9
3,205.2
3,858.9
497.6
3.1
11,642.7
(2,561.5)

18.1
(324.3)
33.6
(272.6)
(539.0)
(158.9)
(380.1)
15,601.9
15,221.8
(1.8)
15,220.0
69.6
$ 15,150.4

3.5
(340.2)
0.2
(336.5)
(1,713.9)
(838.9)
(875.0)
6,177.6
5,302.6
(1.4)
5,301.2
69.6
$ 5,231.6

23.5
(1,002.9)
184.2
(795.2)
(1,720.7)
(825.8)
(894.9)
15,873.2
14,978.3
(4.3)
14,974.0
208.8
$ 14,765.2

7.6
(852.0)
(238.1)
(1,082.5)
(3,644.0)
(1,491.0)
(2,153.0)
6,701.7
4,548.7
(2.6)
4,546.1
162.4
4,383.7

(1.15)
39.73
38.58

(2.40)
15.69
13.29

(2.81)
40.25
37.44

(1.15)
39.73
38.58

(2.40)
15.69
13.29

(2.81)
40.25
37.44

$
$

392.7
392.7

393.6
393.6

394.4
394.4

(6.46)
18.67
12.21

(6.46)
18.67
12.21

358.9
358.9

38

TABLE 2:ALLERGAN PLCS GAAP PRODUCT REVENUE FOR TOP GLOBAL PRODUCTS FOR THE
THREE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015

Table 2
ALLERGAN PLC
NET REVENUES TOP GLOBAL PRODUCTS
(Unaudited; in millions)
Three Months Ended September 30,
U.S.

Global
2016

Botox

Restasis
Fillers

Namenda XR

Lumigan /Ganfort
Bystolic

Linzess /Constella

Alphagan /Combigan

Asacol /Delzicol

Lo Loestrin

Viibryd /Fetzima

Estrace Cream

Minastrin 24
Breast Implants

Carafate / Sulcrate
Ozurdex
Aczone

2015

689.7

$ Change

604.4

% Change

2016
$

2015

496.3

$ Change

435.6

International
% Change

2016
$

2015

193.4

$ Change

85.3

14.1%

60.7

13.9%

371.8
201.8

328.3
167.6

43.5
34.2

13.3%
20.4%

356.4
105.0

312.8
89.7

43.6
15.3

13.9%
17.1%

146.9

214.5

(67.6)

(31.5)%

146.9

214.5

(67.6)

(31.5)%

164.9

157.9

7.0

4.4%

78.3

71.7

6.6

9.2%

86.6

86.2

0.4

0.5%

164.4

155.7

8.7

5.6%

163.9

155.3

8.6

5.5%

0.5

0.4

0.1

25.0%

168.7

118.6

50.1

42.2%

164.4

117.5

46.9

39.9%

4.3

1.1

3.2

134.7

120.8

13.9

11.5%

93.4

81.4

12.0

14.7%

41.3

39.4

1.9

15.4
96.8

168.8

% Change

15.5
77.9

24.6

14.6%

(0.1)
18.9

(0.6)%
24.3%
n.a.

n.m.
4.8%

86.4

157.2

(70.8)

(45.0)%

72.2

141.9

(69.7)

(49.1)%

14.2

15.3

(1.1)

(7.2)%

105.7

90.8

14.9

16.4%

105.7

89.8

15.9

17.7%

1.0

(1.0)

(100.0)%

87.6

84.5

3.1

3.7%

87.6

84.5

3.1

3.7%

n.a.

98.6

87.4

11.2

12.8%

98.6

87.4

11.2

12.8%

n.a.

84.9
86.7

74.4
85.5

10.5
1.2

14.1%
1.4%

84.9
51.1

74.4
50.9

10.5
0.2

14.1%
0.4%

35.6

34.6

1.0

57.0

52.9

4.1

7.8%

56.4

52.9

3.5

6.6%

0.6

0.6

64.3

51.6

12.7

24.6%

20.9

17.6

3.3

18.8%

43.4

34.0

9.4

69.0

48.0

21.0

43.8%

69.0

48.0

21.0

43.8%

(52.0)
2.0
19.7
152.7

(94.7)%
0.2%
(45.4)%
4.4%

(52.0)
22.7
19.7
115.5

(94.7)%
3.4%
(45.4)%
4.1%

Namenda IR
2.9
Other Products Revenues
859.9
Less product sold through our Anda Distribution business(23.7)
Total Net Revenues
$
3,622.2

54.9
857.9
(43.4)
3,469.5

2.9
694.2
(23.7)
2,924.4

54.9
671.5
(43.4)
2,808.9

165.7
697.8

186.4
660.6

(20.7)
37.2

n.a.
2.9%
n.a.
27.6%
n.a.
n.a.
(11.1)%
n.a.
5.6%

39

TABLE 2 (CONT):ALLERGAN PLCS NON-GAAP PRODUCT REVENUE FOR TOP GLOBAL PRODUCTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
Total Revenue Growth
Top Global Products

Q3'16
Total

Botox
Restasis
Namenda IR
Namenda XR
Fillers
Lumigan/Ganfort
Asacol/Delzicol
Bystolic
Alphagan/Combigan
Carafate/Sulcrate
Linzess/Constella
Viibryd/Fetzima
Lo Loestrin
Breast Implants
Estrace Cream
Minastrin 24
Ozurdex
Aczone
Other Product Revenues
Total Revenue
Total Revenue (excluding Namenda IR, divestitures, Anda, Other)

US

Y/Y Growth
(Actual Rates)

Q3'15
Ex-US

Total

US

Y/Y Growth
(ex FX)

Ex-US

689.7
371.8
2.9
146.9
201.8
164.9
86.4
164.4
134.7
57.0
168.7
87.6
105.7
86.7
98.6
84.9
64.3
69.0
836.2

496.3
356.4
2.9
146.9
105.0
78.3
72.2
163.9
93.4
56.4
164.4
87.6
105.7
51.1
98.6
84.9
20.9
69.0
670.5

193.4
15.4
96.8
86.6
14.2
0.5
41.3
0.6
4.3
35.6
43.4
165.7

604.4
328.3
54.9
214.5
167.6
157.9
157.2
155.7
120.8
52.9
118.6
84.5
90.8
85.5
87.4
74.4
51.6
48.0
810.8

435.6
312.8
54.9
214.5
89.7
71.7
141.9
155.3
81.4
52.9
117.5
84.5
89.8
50.9
87.4
74.4
17.6
48.0
624.4

168.8
15.5
77.9
86.2
15.3
0.4
39.4
1.1
1.0
34.6
34.0
186.4

14.1%
13.3%
-94.7%
-31.5%
20.4%
4.4%
-45.0%
5.6%
11.5%
7.8%
42.2%
3.7%
16.4%
1.4%
12.8%
14.1%
24.6%
43.8%
3.1%

14.5%
13.3%
-94.7%
-31.5%
20.9%
5.6%
-44.0%
5.6%
11.8%
7.8%
42.4%
3.7%
16.4%
1.3%
12.8%
14.1%
25.4%
43.8%
3.3%

3,622.2
3,643.0

2,924.4
2,945.2

697.8
697.8

3,465.8
3,401.6

2,805.2
2,772.7

660.6
628.9

4.5%
7.1%

4.8%
7.4%

40

TABLE 3:ALLERGAN PLCS CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER


30, 2016 AND DECEMBER 31, 2015
Table 3
ALLERGAN PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
September 30,
2016
Assets
Cash and cash equivalents
Marketable securities
Accounts receivable, net
Inventories
Other current assets
Assets held for sale
Property, plant and equipment, net
Investments and other assets
Product rights and other intangibles, net
Goodwill
Total assets
Liabilities & Equity
Current liabilities
Liabilities held for sale
Current and long-term debt and capital leases
Deferred income taxes and other liabilities
Total equity
Total liabilities and equity

December 31,
2015

7,554.7
19,837.6
2,398.5
705.5
771.7
663.1
1,566.3
461.8
63,022.7
46,625.8
143,607.7

6,210.0
247.5
32,770.0
14,649.8
89,730.4
143,607.7

1,096.0
9.3
2,125.4
757.5
495.3
14,808.9
1,531.3
458.2
67,836.2
46,465.2
135,583.3

4,202.3
2,228.6
42,530.4
10,032.7
76,589.3
135,583.3

41

TABLE 4:ALLERGAN PLCS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
Table 4
ALLERGAN PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Three Months Ended September 30,
2016
2015
Cash Flows From Operating Activities:
Net income
Reconciliation to net cash provided by operating activities:
Depreciation
Amortization
Provision for inventory reserve
Share-based compensation
Deferred income tax benefit
Pre-tax gain sale of generics business
Non-cash tax effect of gain on sale of generics business
In-process research and development impairments
(Gain) / loss on asset sales and impairments, net
Amortization of inventory step up
Amortization of deferred financing costs
Contingent consideration adjustments, including accretion
Excess tax benefit from stock-based compensation
Other, net
Changes in assets and liabilities (net of effects of acquisitions):
Decrease / (increase) in accounts receivable, net
Decrease / (increase) in inventories
Decrease / (increase) in prepaid expenses and other current assets
Increase / (decrease) in accounts payable and accrued expenses
Increase / (decrease) in income and other taxes payable
Increase / (decrease) in other assets and liabilities
Net cash (used in) / provided by operating activities
Cash Flows From Investing Activities:
Additions to property, plant and equipment
Additions to product rights and other intangibles
Sale of generics business
Additions to investments
Proceeds from sale of investments and other assets
Proceeds from sales of property, plant and equipment
Acquisitions of businesses, net of cash acquired
Net cash provided by / (used in) investing activities
Cash Flows From Financing Activities:
Proceeds from borrowings of long-term indebtedness
Proceeds from borrowings on credit facility and other
Debt issuance and other financing costs
Payments on debt, including capital lease obligations
Proceeds from issuance of preferred shares
Proceeds from issuance of ordinary shares
Proceeds from stock plans
Payments of contingent consideration
Repurchase of ordinary shares
Dividends
Excess tax benefit from stock-based compensation
Net cash (used in) / provided by financing activities
Effect of currency exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Supplemental Disclosures of Cash Flow Information
Taxes paid in connection with the sale of the generics business

15,221.8

5,302.6

Nine Months Ended September 30,


2016
2015
$

14,978.3

4,548.7

40.7
1,609.1
45.8
81.1
(190.0)
(24,203.1)
5,749.9
42.0
(4.7)
23.6
15.9
5.3
10.4

51.4
1,593.9
45.2
109.8
(6,882.0)
300.0
(1.2)
313.7
8.7
81.1
(17.7)
(9.4)

117.6
4,836.7
162.7
269.9
(517.1)
(24,203.1)
5,749.9
316.9
(24.0)
42.4
44.6
76.7
(26.6)
(16.0)

183.9
4,192.8
108.6
510.5
(7,470.9)
497.6
57.2
1,019.8
289.2
89.2
(54.0)
54.9

460.8
(38.4)
(86.5)
(92.1)
346.0
(130.0)
(1,092.4)

532.1
(35.3)
(86.4)
(399.2)
112.8
28.1
1,048.2

(40.4)
(221.6)
158.9
331.9
(131.6)
(397.5)
1,508.6

(364.0)
(270.1)
(3.3)
(290.6)
(103.4)
(21.6)
2,974.5

(67.7)
33,304.5
(15,445.5)
14.5
18.8
(74.5)
17,750.1

(102.5)
(62.6)
(6.0)
52.1
(132.8)
(251.8)

(250.5)
33,304.5
(15,445.5)
40.0
33.3
(74.5)
17,607.3

(350.7)
(91.1)
(27.0)
855.8
133.6
(35,242.7)
(34,722.1)

150.0
(6,995.4)
30.7
(13.9)
(2,691.3)
(69.6)
(5.3)
(9,594.8)
2.3
7,065.2
489.5
7,554.7

(230.5)
87.6
(46.3)
(7.2)
(69.7)
17.7
(248.4)
(2.0)
546.0
1,517.9
2,063.9

1,050.0
(10,831.0)
138.0
(77.7)
(2,758.6)
(208.8)
26.6
(12,661.5)
4.3
6,458.7
1,096.0
7,554.7

26,456
2,882.0
(310.8)
(4,326.7)
4,929.7
4,071.1
195.8
(138.3)
(108.2)
(138.4)
54.0
33,566.6
(5.1)
1,813.9
250.0
2,063.9

2,571.7

2,571.7

42

TABLE 5: GAAP TO NON-GAAP STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
Table 5
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)

GAAP
Expenditures incurred with the Pfizer transaction
Purchase accounting impact on stock-based compensation
for acquired awards
Severance due to integration of acquired entities and other
restructuring programs
Integration charges of acquired businesses
Brand related milestones and upfront expenses for asset
acquisitions
Retrosense
Arkana
Merck license agreement
Accretion and fair-value adjustments to contingent
consideration
Mark-to-market adjustments for foreign currency option
contracts
Non-cash amortization of debt premium recognized in
purchase accounting
Abandonment of certain R&D projects acquired in the
Forest acquisition
Asset sales and impairments, other
Litigation settlement related charges
Other adjustments
Income taxes on pre-tax adjustments

Non-GAAP Adjusted

Research &
Development
$
622.8

(1.3)

(2.2)

(5.2)

(9.3)

(1.7)

(8.0)

(16.3)

(12.0)

(0.3)
(6.4)

(4.1)
(2.9)

(2.6)
3.7

(12.4)
(38.5)

(59.7)
(48.2)
(100.0)

(10.4)

Discrete income tax events

(5.5)

0.1
-

(5.8)
-

Three Months Ended September 30, 2016


Selling &
General &
Asset sales and Interest expense,
Other income
Marketing
Administrative
Amortization
Impairments, net
net
(expense)
$
796.0 $
361.2 $
1,609.1 $
37.3 $
(306.2) $
33.6

COGS
462.2

Net Revenue
$
3,622.2

3,622.2

442.2

386.4

(18.2)
(40.8)
1.3
-

(10.3)

(42.0)
4.7
-

147.7

33.6

Three Months Ended September 30, 2015


Selling &
General &
Asset sales and Interest expense,
Other income
Marketing
Administrative
Amortization
Impairments, net
net
(expense)
683.6 $
339.1 $
1,557.8 $
295.6 $
(336.7) $
0.2

231.3

(316.5) $

775.6

Income taxes
(158.9)

(1,609.1)
-

134.5
123.3

ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)

GAAP

Impact of selling through purchase accounting mark-up on


acquired inventory
Purchase accounting impact on stock-based compensation
for acquired awards
Severance due to integration of acquired entities and other
restructuring programs
Integration charges of acquired businesses
Brand related milestones and upfront expenses for asset
acquisitions
Naurex
Darpin
Merck license agreement
Other
Accretion and fair-value adjustments to contingent
consideration
Mark-to-market adjustments for foreign currency option
contracts
Non-cash amortization of debt premium recognized in
purchase accounting
Abandonment of certain R&D projects acquired in the
Allergan acquisition
Asset sales and impairments, other
Litigation settlement related charges
Other adjustments
Income taxes on pre-tax adjustments
Discrete income tax events
Non-GAAP Adjusted

Net Revenue
3,469.5

COGS
710.3

Research &
Development
1,260.5

(292.9)

(4.3)

(15.4)

(24.6)

(18.6)

(0.2)
(0.2)

(3.2)
(19.5)

(7.3)
3.6

(7.1)
(80.5)

(571.7)
(35.0)
(250.0)
(0.6)

(20.6)

(60.1)

Income taxes
(838.9)

(0.6)

(4.5)

(3.7)
-

1.7
-

3,465.8

392.1

305.0

657.0

(17.5)
$

210.3

(1,557.8)
$

(19.4)

(300.0)
4.4
$

(356.1) $

(5.0)
-

513.7
443.0

(4.8) $

117.8

43

TABLE 5 (CONT): GAAP TO NON-GAAP STATEMENT OF OPERATIONS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 2016 AND 2015
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)

GAAP

Impact of selling through purchase accounting mark-up on


acquired inventory
Expenditures incurred with the Pfizer transaction
Purchase accounting impact on stock-based compensation
for acquired awards
Severance due to integration of acquired entities and other
restructuring programs
Integration charges of acquired businesses
Brand related milestones and upfront expenses for asset
acquisitions
Topokine
Anterios
Retrosense
Arkana
Merck license agreement
Heptares
Other adjustments
Accretion and fair-value adjustments to contingent
consideration
Mark-to-market adjustments for foreign currency option
contracts
Non-cash amortization of debt premium recognized in
purchase accounting
Women's helathcare portfolio product impairment
Abandonment of certain R&D projects acquired in the
Allergan acquisition
Abandonment of certain R&D projects acquired in the
Forest acquisition
Asset sales and impairments, other
Litigation settlement related charges
Other adjustments
Income taxes on pre-tax adjustments

COGS
1,381.1

Research &
Development
1,662.4

Selling &
Marketing
2,429.6

Nine Months Ended September 30, 2016


General &
Asset sales and Interest expense,
Other income
Administrative
Amortization
Impairments, net
net
(expense)
$
1,033.9 $
4,831.9 $
292.9 $
(979.4) $
184.2

(42.4)
(3.5)

(5.7)

(26.2)

(57.5)

(6.4)

(31.8)

(55.3)

(35.7)

(3.6)
(8.9)

(6.7)
3.4

(8.0)
(3.7)

(17.8)
(121.5)

(85.8)
(89.2)
(59.7)
(48.2)
(100.0)
(125.0)
(34.2)

(13.4)

(65.8)

(150.0)

Income taxes
(825.8)

(0.1)

(18.4)

(24.0)

(189.9)

(5.8)
-

(0.1)
-

(42.0)
(37.0)
-

Discrete income tax events


Non-GAAP Adjusted

Net Revenue
10,706.3

10,706.3

1,302.9

1,007.9

(100.0)
(4.5)
-

(4,831.9)
-

2,336.3

678.4

(40.6)
-

(1,020.0) $

34.2

1,127.8
62.2
$

364.2

ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)

GAAP

Impact of selling through purchase accounting mark-up on


acquired inventory
Unsalable inventory resulting from the sale of the
Company's Respiratory Business
Purchase accounting impact on stock-based compensation
for acquired awards
Severance due to integration of acquired entities and other
restructuring programs
Integration charges of acquired businesses
Brand related milestones and upfront expenses for asset
acquisitions
Naurex
Darpin
Merck license agreement
Other
Accretion and fair-value adjustments to contingent
consideration
Mark-to-market adjustments for foreign currency option
contracts
Non-cash amortization of debt premium recognized in
purchase accounting
Amortization of bridge loan commitment fees
Women's healthcare portfolio product impairment
Abandonment of certain R&D projects acquired in the
Allergan acquisition
Asset sales and impairments, other
Interest rate lock impact
Litigation settlement related charges
Other adjustments
Income taxes on pre-tax adjustments
Discrete income tax events
Non-GAAP Adjusted

Net Revenue
9,081.2

COGS
2,150.0

Research &
Development
1,927.9

Selling &
Marketing
2,017.2

Nine Months Ended September 30, 2015


General &
Asset sales and Interest expense,
Other income
Administrative
Amortization
Impairments, net
net
(expense)
Income taxes
$
1,188.0 $
3,858.9 $
500.7 $
(844.4) $
(238.1) $
(1,491.0)

(977.7)

(35.3)

(19.2)

(119.0)

(100.2)

(262.1)

(11.5)
(2.0)

(75.3)
(23.2)

(79.6)
(0.5)

(124.7)
(241.0)

(571.7)
(50.0)
(250.0)
(25.6)

(53.1)

(34.7)

(3.8)
-

0.3
-

1.7
-

9,077.4

1,051.2

778.7

1,838.6

0.5
(42.2)
-

488.4

(192.1)

(3,858.9)
$

(20.5)
(9.6)
$

(50.8)
-

(300.0)
(8.6)
$

(895.2) $

263.0
(31.0)
2.3
(3.8) $

1,350.3
450.0
309.3

44

TABLE 6: RECONCILIATION OF REPORTED NET (LOSS) FROM CONTINUING OPERATIONS AND


DILUTED EARNINGS PER SHARE TO NON-GAAP NET INCOME AND DILUTED EPS FOR THE THREE
AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
Table 6
ALLERGAN PLC
RECONCILIATION TABLE
(Unaudited; in millions except per share amounts)
Three Months Ended
September 30,
2016
2015

Nine Months Ended


September 30,
2016
2015

GAAP to Non-GAAP Adjusted net income calculation


GAAP (loss) from continuing operations attributable to shareholders
Adjusted for:
Amortization
(1)
Acquisition and licensing charges
Accretion and fair-value adjustments to contingent consideration
Impairment/asset sales and related costs
Non-recurring (gain) / losses
Legal settlements
Income taxes on items above and other income tax adjustments
Non-GAAP adjusted net income attributable to
shareholders

(381.9)

$ (876.4)

1,609.1
321.5
15.9
37.3
18.2
40.8
(282.2)

1,557.8
1,297.7
81.3
295.6
4.5
17.5
(956.7)

(899.2)

$ (2,155.6)

4,831.9
793.2
79.3
292.9
18.4
100.0
(1,190.0)

3,858.9
3,155.9
87.3
500.7
42.2
20.5
(1,800.3)

$ 1,378.7

$ 1,421.3

4,026.5

3,709.6

Diluted (loss) per share from continuing operations attributable to shareholders- GAAP

(0.97)

(2.23)

(2.28)

(6.01)

Non-GAAP adjusted diluted net income per share attributable to shareholders

3.32

3.41

9.66

9.82

Diluted earnings per share

Basic weighted average ordinary shares outstanding


Effect of dilutive securities:
Dilutive shares
Diluted weighted average ordinary shares outstanding
(1)

392.7

393.6

394.4

358.9

22.0
414.7

22.7
416.3

22.3
416.7

18.8
377.7

Includes stock-based compensation due to the Allergan, Forest and Warner Chilcott acquisitions as well as the valuation accounting impact in interest expense, net.

45

TABLE 7: RECONCILIATION OF REPORTED NET (LOSS) FROM CONTINUING OPERATIONS FOR


THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015 TO ADJUSTED EBITDA
Table 7
ALLERGAN PLC
ADJUSTED EBITDA and ADJUSTED OPERATING INCOME, RECONCILIATION TABLE
(Unaudited; in millions)

Three Months Ended


September 30,
2016
2015

GAAP (loss) from continuing operations attributable to shareholders


Plus:
Interest expense
Interest income
(Benefit) for income taxes
Depreciation (includes accelerated depreciation)
Amortization
EBITDA
Adjusted for:
Acquisition and licensing and other charges
Impairment/asset sales and related costs
Non-recurring (gain) / losses
Legal settlements
Accretion and fair-value adjustments to contingent consideration
Share-based compensation
Adjusted EBITDA
Adjusted for:
Depreciation
Dividend income
Share-based compensation restructuring charges and purchase
accounting impact on stock-based compensation for acquired awards
Adjusted Operating Income

(381.9)

324.3
(18.1)
(158.9)
40.7
1,609.1
1,415.2

293.8
37.3
18.2
40.8
15.9
81.0
1,902.2

(876.4)

340.2
(3.5)
(838.9)
37.9
1,557.8
217.1

1,254.2
295.6
4.5
17.5
81.3
117.0
1,987.2

Nine Months Ended


September 30,
2016
2015

(899.2)

1,002.9
(23.5)
(825.8)
114.5
4,831.9
4,200.8

704.6
292.9
18.4
100.0
79.3
257.0
5,653.0

(2,155.6)

852.0
(7.6)
(1,491.0)
96.0
3,858.9
1,152.7

2,706.2
500.7
42.2
20.5
87.3
625.3
5,134.9

(40.7)
(34.1)

(37.9)
-

(114.5)
(34.1)

(96.0)
-

(43.0)

(54.1)

(127.8)

(124.8)

1,784.4

1,895.2

5,376.6

4,914.1

46

TABLE 8: NET REVENUES AND CONTRIBUTION MARGIN FOR US SPECIALIZED THERAPEUTICS


BUSINESS SEGMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
Table 8
ALLERGAN PLC
US Specialized Therapeutics Product Revenue
(Unaudited; in millions)
Change

Three Months Ended September 30,


2016
$

Total Eye Care

Restasis

Lumigan /Ganfort

Alphagan /Combigan

Ozurdex
Eye Drops
Other Eye Care
Total Medical Aesthetics
Facial Aesthetics

Botox Cosmetics
Fillers

Kybella
Plastic Surgery
Breast Implants
Other Plastic Surgery
Skin Care

SkinMedica

Latisse
Total Medical Dermatology

Aczone

Tazorac

Botox Hyperhidrosis
Other Medical Dermatology
Total Neuroscience & Urology

Botox Therapeutics

Rapaflo
Other Revenues
Net revenues

(1)

608.5
356.4
78.3
93.4
20.9
50.2
9.3
388.9
293.7
174.5
105.0
14.2
52.2
51.1
1.1
43.0
25.8
17.2
116.1
69.0
27.5
16.3
3.3
330.7
305.5
25.2
9.0
1,453.2

2015
$

(1) Includes revenues earned that were distributed through the Anda Distribution business to third party customers.

(1)

539.9
312.8
71.7
81.4
17.6
45.3
11.1
340.1
249.0
159.3
89.7
54.3
50.9
3.4
36.8
23.0
13.8
107.8
48.0
27.6
15.0
17.2
291.4
261.3
30.1
17.4
1,296.6

Dollars
$

68.6
43.6
6.6
12.0
3.3
4.9
(1.8)
48.8
44.7
15.2
15.3
14.2
(2.1)
0.2
(2.3)
6.2
2.8
3.4
8.3
21.0
(0.1)
1.3
(13.9)
39.3
44.2
(4.9)
(8.4)
156.6

%
12.7%
13.9%
9.2%
14.7%
18.8%
10.8%
(16.2)%
14.3%
18.0%
9.5%
17.1%
n.a.
(3.9)%
0.4%
(67.6)%
16.8%
12.2%
24.6%
7.7%
43.8%
(0.4)%
8.7%
(80.8)%
13.5%
16.9%
(16.3)%
(48.3)%
12.1%

47

TABLE 8 (CONT): NET REVENUES AND CONTRIBUTION MARGIN FOR US SPECIALIZED


THERAPEUTICS BUSINESS SEGMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND
2015
Change

Nine Months Ended September 30,


2016
$

Total Eye Care

Restasis

Lumigan /Ganfort

Alphagan /Combigan

Ozurdex
Eye Drops
Other Eye Care
Total Medical Aesthetics
Facial Aesthetics

Botox Cosmetics
Fillers

Kybella
Plastic Surgery
Breast Implants
Other Plastic Surgery
Skin Care

SkinMedica

Latisse
Total Medical Dermatology

Aczone

Tazorac

Botox Hyperhidrosis
Other Medical Dermatology
Total Neuroscience & Urology

Botox Therapeutics

Rapaflo
Other Neuroscience & Urology
Other Revenues
Net revenues

(1)

1,777.6
1,026.4
240.4
274.3
61.8
140.1
34.6
1,182.6
893.3
529.8
325.3
38.2
153.1
149.2
3.9
136.2
81.5
54.7
282.2
156.1
68.0
48.9
9.2
963.8
875.3
87.6
0.9
34.6
4,240.8

2015
$

(1) Includes revenues earned that were distributed through the Anda Distribution business to third party customers.

(1)

1,213.2
651.4
165.9
184.9
36.9
131.8
42.3
761.4
547.9
341.2
206.7
122.5
112.8
9.7
91.0
51.6
39.4
249.4
114.3
65.7
35.5
33.9
637.2
549.7
87.5
28.4
2,889.6

Dollars
$

564.4
375.0
74.5
89.4
24.9
8.3
(7.7)
421.2
345.4
188.6
118.6
38.2
30.6
36.4
(5.8)
45.2
29.9
15.3
32.8
41.8
2.3
13.4
(24.7)
326.6
325.6
0.1
0.9
6.2
1,351.2

%
46.5%
57.6%
44.9%
48.4%
67.5%
6.3%
(18.2)%
55.3%
63.0%
55.3%
57.4%
n.a.
25.0%
32.3%
(59.8)%
49.7%
57.9%
38.8%
13.2%
36.6%
3.5%
37.7%
(72.9)%
51.3%
59.2%
0.1%
n.a.
21.8%
46.8%

48

TABLE 9: NET REVENUES AND CONTRIBUTION MARGIN FOR US GENERAL MEDICINE BUSINESS
SEGMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
Table 9
ALLERGAN PLC
US General Medicine Product Revenue
(Unaudited; in millions)
Change

Three Months Ended September 30,


2016
Total Central Nervous System (CNS)

Namenda XR

Namzaric

Viibryd /Fetzima
Vraylar

Saphris

Namenda IR
Total Gastrointestinal (GI)

Linzess

Viberzi

Asacol /Delzicol

Carafate /Sulcrate

Canasa /Salofalk

Zenpep
Other GI

Total Women's Health

Lo Loestrin

Minastrin 24

Estrace Cream

Liletta
Other Women's Health
Total Anti-Infectives

Teflaro

Avycaz

Dalvance
Other Anti-Infectives
Established Brands

Bystolic
Armour Thyroid

Enablex

Lexapro

Savella
PacPharma
Other Established Brands
Other Revenues
Net revenues

(1)

325.5
146.9
14.9
87.6
32.4
40.8
2.9
431.4
164.4
30.9
72.2
56.4
47.2
52.5
7.8
305.3
105.7
84.9
98.6
4.4
11.7
52.5
33.3
4.8
10.3
4.1
319.3
163.9
39.1
1.9
15.6
28.1
6.2
64.5
54.1
1,488.1

2015
$

(1) Includes revenues earned that were distributed through the Anda Distribution business to third party customers.

(1)

406.7
214.5
1.7
84.5
51.1
54.9
398.6
117.5
141.9
52.9
34.6
43.1
8.6
268.0
89.8
74.4
87.4
5.8
10.6
52.3
35.8
7.5
4.9
4.1
400.5
155.3
34.7
17.2
17.8
29.0
27.4
119.1
25.9
1,552.0

Dollars

(81.2)
(67.6)
13.2
3.1
32.4
(10.3)
(52.0)
32.8
46.9
30.9
(69.7)
3.5
12.6
9.4
(0.8)
37.3
15.9
10.5
11.2
(1.4)
1.1
0.2
(2.5)
(2.7)
5.4
(81.2)
8.6
4.4
(15.3)
(2.2)
(0.9)
(21.2)
(54.6)
28.2
(63.9)

%
(20.0)%
(31.5)%
n.m.
3.7%
n.a.
(20.2)%
(94.7)%
8.2%
39.9%
n.a.
(49.1)%
6.6%
36.4%
21.8%
(9.3)%
13.9%
17.7%
14.1%
12.8%
(24.1)%
10.4%
0.4%
(7.0)%
(36.0)%
110.2%
0.0%
(20.3)%
5.5%
12.7%
(89.0)%
(12.4)%
(3.1)%
(77.4)%
(45.8)%
108.9%
(4.1)%

49

TABLE 9 (CONT): NET REVENUES AND CONTRIBUTION MARGIN FOR US GENERAL MEDICINE
BUSINESS SEGMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
Change

Nine Months Ended September 30,


2016
Total Central Nervous System (CNS)

Namenda XR

Namzaric

Viibryd /Fetzima
Vraylar

Saphris

Namenda IR
Total Gastrointestinal (GI)

Linzess

Viberzi

Asacol /Delzicol

Carafate /Sulcrate

Canasa /Salofalk

Zenpep
Other GI
Total Women's Health

Lo Loestrin

Minastrin 24

Estrace Cream

Liletta
Other Women's Health
Total Anti-Infectives

Teflaro

Avycaz

Dalvance
Other Anti-Infectives
Established Brands

Bystolic
Armour Thyroid

Enablex

Lexapro

Savella
PacPharma
Other Established Brands
Other Revenues
Net revenues

(1)

964.6
486.5
38.0
252.6
51.1
123.6
12.8
1,277.0
452.0
55.3
297.9
167.7
135.0
145.1
24.0
865.1
296.0
247.5
276.4
15.0
30.2
167.1
101.9
26.9
26.7
11.6
1,038.8
477.8
121.8
14.7
50.8
74.1
49.7
249.9
78.3
4,390.9

2015
$

(1) Includes revenues earned that were distributed through the Anda Distribution business to third party customers.

(1)

1,485.1
569.8
3.3
244.8
134.3
532.9
1,138.4
325.1
407.8
153.4
102.2
121.5
28.4
716.7
251.7
195.3
229.4
10.7
29.6
138.3
105.3
12.9
11.3
8.8
1,267.7
476.1
88.9
51.5
53.6
80.6
56.6
460.4
57.5
4,803.7

Dollars

(520.5)
(83.3)
34.7
7.8
51.1
(10.7)
(520.1)
138.6
126.9
55.3
(109.9)
14.3
32.8
23.6
(4.4)
148.4
44.3
52.2
47.0
4.3
0.6
28.8
(3.4)
14.0
15.4
2.8
(228.9)
1.7
32.9
(36.8)
(2.8)
(6.5)
(6.9)
(210.5)
20.8
(412.8)

%
(35.0)%
(14.6)%
n.m.
3.2%
n.a.
(8.0)%
(97.6)%
12.2%
39.0%
n.a.
(26.9)%
9.3%
32.1%
19.4%
(15.5)%
20.7%
17.6%
26.7%
20.5%
40.2%
2.0%
20.8%
(3.2)%
108.5%
136.3%
31.8%
(18.1)%
0.4%
37.0%
(71.5)%
(5.2)%
(8.1)%
(12.2)%
(45.7)%
36.2%
(8.6)%

50

TABLE 10: NET REVENUES AND CONTRIBUTION MARGIN FOR INTERNATIONAL BUSINESS
SEGMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
Table 10
ALLERGAN PLC
International Product Revenue
(Unaudited; in millions)
Change

Three Months Ended September 30,


2016
2015
$

Total Eye Care

Lumigan /Ganfort

Alphagan /Combigan

Ozurdex

Optive
Other Eye Drops

Restasis
Other Eye Care
Total Medical Aesthetics
Facial Aesthetics

Botox Cosmetics
Fillers

Belkyra (Kybella )
Plastic Surgery
Breast Implants

Earfold
Skin Care

Botox Therapeutics and Other

Botox Therapeutics

Asacol /Delzicol

Constella
Other Products**
Other Revenues
Net revenues**

294.2
86.6
41.3
43.4
25.6
42.1
15.4
39.8
251.0
212.6
115.3
96.8
0.5
35.8
35.6
0.2
2.6
134.6
78.1
14.2
4.3
38.0
18.0
697.8

281.5
86.2
39.4
34.0
23.2
44.0
15.5
39.2
214.8
176.5
98.6
77.9
34.6
34.6
3.7
155.5
70.2
15.3
1.1
68.9
8.8
660.6

Dollars
$

12.7
0.4
1.9
9.4
2.4
(1.9)
(0.1)
0.6
36.2
36.1
16.7
18.9
0.5
1.2
1.0
0.2
(1.1)
(20.9)
7.9
(1.1)
3.2
(30.9)
9.2
37.2

%
4.5%
0.5%
4.8%
27.6%
10.3%
(4.3)%
(0.6)%
1.5%
16.9%
20.5%
16.9%
24.3%
n.a.
3.5%
2.9%
n.a.
(29.7)%
(13.4)%
11.3%
(7.2)%
n.m.
(44.8)%
104.5%
5.6%

** Includes an adjustment of $31.7 million recorded in the three months ended September 30, 2015
related to international other product revenues for the six months ended June 30, 2015 that were
reported in discontinued operations instead of continuing operations during the six months ended
June 30, 2015. The impact of this out-of-period adjustment is not material to the six months
ended June 30, 2015 or the three months ended September 30, 2015 and had no impact on the
nine months ended September 30, 2015. Excluding this adjustment, international revenues would
have increased 12% on a performance basis.

51

TABLE 10 (CONT): NET REVENUES AND CONTRIBUTION MARGIN FOR INTERNATIONAL


BUSINESS SEGMENT FOR THE NINE MONTHS ENDED JUNE 30, 2016 AND 2015
Change

Nine Months Ended September 30,


2016
2015
$

Total Eye Care

Lumigan /Ganfort

Alphagan /Combigan

Ozurdex

Optive
Other Eye Drops

Restasis
Other Eye Care
Total Medical Aesthetics
Facial Aesthetics

Botox Cosmetics
Fillers

Belkyra (Kybella )
Plastic Surgery
Breast Implants

Earfold
Skin Care

Botox Therapeutics and Other

Botox Therapeutics

Asacol /Delzicol

Constella
Other Products
Other Revenues
Net revenues

904.4
269.2
127.3
130.2
75.7
131.2
49.7
121.1
780.0
658.7
352.9
304.2
1.6
112.9
112.5
0.4
8.4
399.0
240.0
40.5
12.7
105.8
44.7
2,128.1

623.7
189.7
87.4
72.7
51.9
99.5
31.8
90.7
509.9
416.4
234.9
181.5
85.6
85.6
7.9
321.5
158.5
47.8
2.9
112.3
41.3
1,496.4

Dollars
$

280.7
79.5
39.9
57.5
23.8
31.7
17.9
30.4
270.1
242.3
118.0
122.7
1.6
27.3
26.9
0.4
0.5
77.5
81.5
(7.3)
9.8
(6.5)
3.4
631.7

%
45.0%
41.9%
45.7%
79.1%
45.9%
31.9%
56.3%
33.5%
53.0%
58.2%
50.2%
67.6%
n.a.
31.9%
31.4%
n.a.
6.3%
24.1%
51.4%
(15.3)%
n.m.
(5.8)%
8.2%
42.2%

52

TABLE 11: GAAP TO NON-GAAP RECONCILIATION OF FY 2016 EPS FORECAST

$ in millions
GAAP (loss) from continuing operations attributable to shareholders
Adjusted for:
Amortization

LOW

HIGH

$ (1,225.0)

$ (1,150.0)

(1)

Acquisition and licensing charges


Accretion and fair-value adjustments to contingent consideration
Impairment/asset sales and related costs
Non-recurring (gain) / losses
Legal settlements
Income taxes on items above and other income tax adjustments
Non-GAAP Adjusted net income attributable to
shareholders

6,440.0

6,440.0

1,175.0
85.0
292.9
18.4
100.0

1,225.0
95.0
292.9
18.4
100.0

(1,461.3)

(1,511.3)

$ 5,425.0

$ 5,510.0

Diluted (loss) per share from continuing operations attributable to shareholders- GAAP

(3.17)

(2.98)

Non-GAAP Adjusted diluted net income per share attributable to shareholders

13.30

13.50

Diluted earnings per share

Basic weighted average ordinary shares outstanding


Effect of dilutive securities:
Dilutive shares

386.0

386.0

22.0

22.0

Diluted weighted average ordinary shares outstanding

408.0

408.0

53

TABLE 12: NEW SEGMENT LEGEND


US General Medicine

US Specialized Therapeutics
Restasis
Lumigan/Ganfort
Eye Care

AlphaganCombigan
Ozurdex
Eye Drops

Other Eye Care


(includes):
Relestat/Elestat
Trivaris
Acular/Acuvail
Zymar/Zymaxid
Ocuflox
Z-Pred
Lastacaft
Other

CNS

Breast implants

GastroIntestinal

Med
Dermatology

Neuroscience
& Urology

Tazorac

Botox
Hyperhidrosis

Other Derm
(include): Cordran
tape/others

Botox Therapeutic

Rapaflo

AlphaganCombigan

Zenpep

Ozurdex
Optive

Asacol/Delzicol

Restasis

Other GI (includes):
Pylera
Viokace
Reactiv

Other Eye drops

Other Eye
care
(includes):
Elestat
Trivaris
Acular
Acuvail
Zymar
Zymaxid
Ocuflox
Z-Pred
Lastacaft
Other

Canasa/Salofalk
Facial Aesthetics

Other: SeriScaffold

Aczone

Saphris

Carafate/Sulcrate

Womens
Health

Latisse

Namzaric

Viberzi

Skin Care
SkinMedica

Lumigan/Ganfort

Linzess

Fillers

Plastic Surgery

Vraylar

Eye Care

Kybella
Medical
Aesthetics

Namenda XR/IR

Viibryd/Fetzima

Facial Aesthetics
Botox Cosmetic

International

AntiInfectives

Lo Loestrin

Liletta

Minastrin 24
Estrace Cream

Other WH (includes)
Crinone
Nuvessa

Teflaro

Dalvance

Avycaz

Other AI (includes):
Monurol

Bystolic

Savella

Armour Thyroid

Established
Brands/All
Other

Enablex
Lexapro
PacPharma

Other Established
Brands : Actonel,
Aerochamber,
Androderm, Bentyl,
Celexa, Femring,
Fioricet, Generess,
Infed, Kadian Norco,
Morphine, Other

Botox Cosmetic
Belkyra (Kybella)
Medical
Aesthetics

Fillers
Plastic Surgery
Breast
implants

Other

Skin Care

Botox Therapeutics
Other
Therapeutics

Asacol/Delzicol
Constella
Others include: Rapaflo,
Macrobid, other

54